Study Finds ObamaCare’s ‘Cadillac Tax’ Will Hit Chevy-Class Families Hardest

IBD reports:

As with so many other things in the “Affordable Care Act,” the law’s so-called Cadillac tax is grossly misleading.

Democrats who wrote the law claimed that the tax was meant only to discourage a small share of gold-plated health plans offered to high-priced executives. When it kicks in, it will impose a huge, non-deductible 40% surcharge on insurance premiums above $10,800 for individuals and $29,100 for families.

The tax effectively caps what is today an unlimited tax exemption offered to employer-provided insurance. MIT economists Jonathan Gruber, who helped design the tax, claimed that only “the top few percent of health plans” would be affected.

The implication of it all was that only the rich would notice any changes.

But a new study published in the International Journal of Health Services shows that middle class families — those with incomes between $38,000 and $100,000 — will bear the brunt of the Cadillac tax.

That’s because, as a share of income, these families benefit the most from the current tax exemption, which effectively lowers the cost of insurance provided through the workplace. But the exemption provides relatively little benefit to either the poor or the wealthy.

Gruber himself was caught on tape saying that Democrats were “mislabeling” the Cadillac tax, “calling it a tax on insurance plans rather than a tax on people when we all know it’s a tax on people who hold those insurance plans.”

Are you used of getting health insurance at work? Good luck to you!